Why China’s economy is faltering — and how that might impact Canada

globalnews.ca:

inflation fight, but experts warn it could also mean a steeper downturn domestically this fall.The early stages of China’s rebound from the COVID-19 pandemic spurred hope for a stronger global recovery at the start of this year, but recent months have seen some economic forecasters slash expectations for the world’s second-biggest economy.Here’s a look at what’s behind China’s faltering economy and the ripple effects it could have in other countries.China stocks fell to around nine-month lows on Monday as investors reacted to milder-than-expected measures by authorities to boost confidence in the economy, with sluggish recovery, high youth unemployment and property woes keeping sentiment fragile.Economic output and consumer spending came in below expectations in July, coming off one of China’s weakest quarters for annualized growth in decades.Jimmy Jean, Desjardins’ chief economist, said in a note on Aug. 11 that slowing foreign-direct investment, Western trade restrictions and a trend of multinational corporations reconfiguring their supply chains away from China post-COVID are all compounding to hamper growth.“We were always skeptical of the narrative that China’s reopening would save the global economy this year,” he wrote.